VMware to acquire OpenFlow pioneer Nicira for $1.26 billion

Nicira helped define the emerging field of software-defined networking

Continuing its push to virtualize all aspects of the data center, VMware is acquiring software-defined networking firm Nicira for US$1.26 billion, the companies announced Monday.

"I believe we have the same opportunity to do for networking what we've already done for servers and many other parts of the data center," Steve Herrod, VMware's CTO, wrote in a blog post about the deal.

VMware will fold Nicira's core technology, called Open vSwitch, into its own portfolio of virtual networking software, VMware said.

Nicira's software creates an abstraction layer between servers and networking gear, allowing organizations to decouple the network topology from the equipment, creating virtualized pools of networking capability. Its software supports a wide variety of network interface cards, switches, appliances, networking APIs (application programming interfaces) and fabric types.

VMware will encourage Nicira employees to continue working on open-source networking projects, it said. Some of Nicira's employees led the development of the OpenFlow software-defined networking protocol and were also involved with the OpenStack Quantum networking software.

VMware will pay $1.05 billion in cash plus $210 million of assumed unvested equity awards to purchase Nicira, which was founded in 2007 and is based in Palo Alto, California.

The deal is expected to close by the end of the year, pending regulatory approvals and other closing conditions.

Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Joab Jackson

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Cate Bacon

Aruba Instant On AP11D

The strength of the Aruba Instant On AP11D is that the design and feature set support the modern, flexible, and mobile way of working.

Dr Prabigya Shiwakoti

Aruba Instant On AP11D

Aruba backs the AP11D up with a two-year warranty and 24/7 phone support.

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?